Canto Blockchain platform has been facing a serious technical issue since August 10. The blockchain’s transaction processes have halted, causing significant concern among platform users and investors. However, efforts are being made to resolve the issue quickly, and it is expected to be fixed today.
Cause and Consequences of the Interruption
Canto Blockchain’s interruption is due to consensus issues. Consensus is considered the heart of a blockchain network’s operation, and any disruption can cause the entire network to halt. This is exactly what happened with Canto; the platform stopped all transaction processes. The developer team stated on social media platform X that user funds are safe, which provided some reassurance.
Following the start of the interruption, Canto’s cryptocurrency, CANTO, experienced a significant loss in value. Initially, a 21% drop was recorded, leading to a total loss of 83% since May. However, by the weekend, some of these losses were recovered, and the token began to show signs of recovery. At the time of writing, it was trading at $0.045.
Activity Decreased and TVL Value Dropped
This technical issue with Canto also provides important insights into the platform’s overall performance. On-chain activity has seen a noticeable decline recently. According to DefiLlama data, the platform’s total value locked (TVL) has dropped from over $200 million in March to approximately $13.7 million currently. This decline indicates a loss of interest and confidence among investors and users in the platform.
When Canto launched in August 2022, it garnered significant attention as an innovative platform offering decentralized finance (DeFi) services. It attracted investors with services like lending, staking, and liquidity provision. However, the recent interruption and significant drop in TVL show that the platform has struggled to maintain this interest. These developments raise questions about the future direction of Canto.
